Cashback Rules

Our cashback program makes spending inherently rewarding, and oAsset issuers are able to customize the cashback rules across different scenarios, including, but not limited to the cashback multiples and the cashback periods. This flexibility allows issuers to align incentives with user and business needs.

Cashback Multiple

The cashback multiplier defines the maximum reward relative to the transaction tax, representing the multiple of tax rebated to users. Initially, to reward early users, the cashback multiplier will start at 10x and gradually decrease, where each 1 USDO spent (incurring a 0.1 USDO tax) yields cashback equivalent to 10 times the tax, or 100% of the consumption amount — literally "free spending" for users. As user base expands, the cashback multiplie will be lowered accordingly in phases, and STARs earned in later phases will carry reduced rewards, for example:

• Phase I (Epoch 0–100): 10x multiple, 100% consumption refunds to drive adoption

• Phase II (Epoch 101–300): 5x multiple, 50% consumption refunds, maintain strong incentives

• Phase III (Epoch 301–700): 2.5x multiple, 25% consumption refunds, decent incentives

• Phase III (Epoch 701–): 1.25x multiple, 12.5% consumption refunds, normal purchase discount

Note: Values are illustrative; adjustments are governed by community decisions. This phased approach rewards early participants with higher returns while ensuring sustainable incentives for later users, mitigating risks of shortfalls.

Cashback Period

Each STAR’s cashback rewards is released incrementally across 100 epochs.

For example, consider a user earning 10 STARs with a 10x cashback multiple from a 1,000 USDO transaction (incurring 100 USDO in tax). These STARs yield cashback progressively from epoch 1 through 100, eventually totaling 1,000 USDO—effectively refunding the original payment and achieving “free spending” by the end of the cycle.

An illustrative (partial) cumulative distribution might look like:

• Epoch 1: 10 USDO

• Epoch 2: 16 USDO cumulative

• Epoch 3: 20 USDO cumulative

• ...

• Epoch 100: 1,000 USDO cumulative

Note: The system advances to the next epoch only after accumulating sufficient cashbacks from transaction taxes, with all cashback rewards exclusively sourced from the system’s cash reward pool. The speed at which each epoch advances depends on how quickly the system collects required cashback from transaction taxes.

Cashback Claim

Ouroboros implements a progressive claim process for cashbacks that is released to ensure system stability. Cashback claims can only be initiated once we advance to the next epoch.

• First Claim: Users can initiate a cashback claim from a specific STAR, with a cap of 1 USDO.

• Second Claim: The cap doubles to 2 USDO. Users receive up to 2 USDO.

• Subsequent Claims: The cap doubles each time (4, 8, 16, 32, 64, 128 USDO, etc.).

• Claim Amount: Calculated as 2^(N-1), where N is the ordinal number of the claim.

This step-by-step claim structure enables the system to manage liquidity effectively and process claims smoothly, preventing sudden large fund depletions.